CF Industries Announces Pricing of $1,250,000,000 Senior Secured Notes Offering
CF Industries Holdings, Inc. (NYSE: CF) today announced that its wholly owned subsidiary CF Industries, Inc. has priced its
previously announced offering of $1,250,000,000 aggregate principal amount of senior secured notes, comprising $500,000,000
aggregate principal amount of 3.400% senior secured notes due 2021 and $750,000,000 aggregate principal amount of 4.500% senior
secured notes due 2026. The notes due 2021 will be issued at a price of 99.853% of their face value and the notes due 2026 will be
issued at a price of 99.385% of their face value. The closing of the sale of the secured notes is expected to occur on or about
November 21, 2016, subject to customary closing conditions. The secured notes will be guaranteed on a senior secured basis,
jointly and severally, by CF Industries Holdings, Inc. and its domestic subsidiaries (other than the issuer of the secured notes)
that are borrowers or that guarantee obligations under CF Industries’ revolving credit facility.
CF Industries intends to use the net proceeds from the offering of the secured notes, together with cash on hand and/or
borrowings under its revolving credit facility, to prepay the $1.0 billion aggregate principal amount of its senior notes due
2022, 2025 and 2027 and to pay the related make-whole amount and related fees and expenses. The make-whole amount was estimated to
be approximately $210 million based on market interest rates on October 31, 2016. The actual make-whole amount will be determined
based on market interest rates on or about November 17, 2016. CF Industries intends to use for general corporate purposes any net
proceeds from the offering of the secured notes in excess of the amount required for the senior notes prepayment, including the
make-whole amount, and related fees and expenses.
The secured notes due 2021 and 2026 will be sold to qualified institutional buyers in reliance on Rule 144A and outside the
United States to non-U.S. persons in reliance on Regulation S. The notes have not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), or any state securities laws and, unless so registered, may not be offered or sold in the United
States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities
Act and applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
Safe Harbor Statement
All statements in this communication by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), other than
those relating to historical facts, are forward-looking statements. Forward-looking statements can generally be identified by their
use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will”
or “would” and similar terms and phrases, including references to assumptions. Forward-looking statements are not guarantees of
future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond the Company’s
control, which could cause actual results to differ materially from such statements. These statements may include, but are not
limited to, statements about strategic plans and statements about future financial and operating results.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include,
among others, the cyclical nature of the Company’s business and the agricultural sector; the global commodity nature of the
Company’s fertilizer products, the impact of global supply and demand on the Company’s selling prices, and the intense global
competition from other fertilizer producers; conditions in the U.S. and European agricultural industry; the volatility of natural
gas prices in North America and Europe; difficulties in securing the supply and delivery of raw materials, increases in their costs
or delays or interruptions in their delivery; reliance on third party providers of transportation services and equipment; the
significant risks and hazards involved in producing and handling the Company’s products against which the Company may not be fully
insured; the Company’s ability to manage its indebtedness; risks associated with the Company’s incurrence of additional
indebtedness; the Company’s ability to complete the offering of the Notes; the Company’s ability to maintain compliance with
covenants under the agreements governing its indebtedness; downgrades of the Company’s credit ratings; risks associated with cyber
security; weather conditions; the Company’s ability to complete its production capacity expansion projects on schedule as planned,
on budget or at all; risks associated with the Company’s ability to utilize its tax net operating losses and other tax assets,
including the risk that the use of such tax benefits is limited by an “ownership change” (as defined under the Internal Revenue
Code and related Internal Revenue Service pronouncements); risks associated with expansions of the Company’s business, including
unanticipated adverse consequences and the significant resources that could be required; potential liabilities and expenditures
related to environmental, health and safety laws and regulations and permitting requirements; future regulatory restrictions and
requirements related to greenhouse gas emissions; the seasonality of the fertilizer business; the impact of changing market
conditions on the Company’s forward sales programs; risks involving derivatives and the effectiveness of the Company’s risk
measurement and hedging activities; the Company’s reliance on a limited number of key facilities; risks associated with the
operation or management of the strategic venture with CHS Inc. (the "CHS Strategic Venture"); risks and uncertainties relating to
the market prices of the fertilizer products that are the subject of the supply agreement with CHS Inc. over the life of the supply
agreement and the risk that any challenges related to the CHS Strategic Venture will harm the Company's other business
relationships; risks associated with the Company’s Point Lisas Nitrogen Limited joint venture; acts of terrorism and regulations to
combat terrorism; risks associated with international operations; and deterioration of global market and economic conditions.
More detailed information about factors that may affect the Company’s performance and could cause actual results to differ
materially from those in any forward-looking statements may be found in CF Industries Holdings, Inc.’s filings with the Securities
and Exchange Commission, including CF Industries Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2016, which is available in the Investor Relations section of the Company’s web site. Forward-looking statements are
given only as of the date of this communication and the Company disclaims any obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or otherwise, except as required by law.
CF Industries Holdings, Inc.
Media
Chris Close
Corporate Communications
847-405-2542 – cclose@cfindustries.com
or
Investors
Anthony Fusco
Investor Relations
847-405-2598 – afusco@cfindustries.com
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